Reeves set to freeze thresholds for 2 years

RACHEL Reeves will reportedly freeze thresholds for an extra two years after abandoning her plans to hike income tax in the budget.

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She could also bring in a new levy on high-value properties, in the measures to be announced on November 26.

The Chancellor had been expected to raise income tax in the face of a yawning gap in her spending plans, hinting as recently as Monday that the alternative would be “deep cuts” to public investment.

But she has ditched the plan, which would have broken a Labour manifesto promise.

Ms Reeves is understood to have U-turned after improved forecasting from the Office for Budget Responsibility, but other tax rises have not been ruled out.